SOLUTION: The initial value of a stock is $2500. The value of the stock is expected to grow at an annual rate of 4%.
Let x represent the number of years since the stock was made available
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Question 1105059: The initial value of a stock is $2500. The value of the stock is expected to grow at an annual rate of 4%.
Let x represent the number of years since the stock was made available for purchase. Let y represent the value of the stock x years later.
What equation models the value of the stock x years after it was made available?
Answer by leslielai89(5) (Show Source): You can put this solution on YOUR website!
Q: The initial value of a stock is $2500. The value of the stock is expected to grow at an annual rate of 4%.
Let x represent the number of years since the stock was made available for purchase. Let y represent the value of the stock x years later.
What equation models the value of the stock x years after it was made available?
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y1 : amount of money after one year
y1 = $2500 *(100%+4%)
y1 = $2500 (1,04)
y2: amount of money after two years
y2 = y1*(100%+4%).... because they grow every year and +4% of the previous year
y2= $2500 (1,04) *(1,04)
after we check it, we will get a pattern which is
like
y10: amount of money after ten years
y10=($2500*(1,04)^10)
therefore after x years, the model of equation will be
y = ($2500)*(1,04)^x
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by: Leslie (OhMathGoodness)
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